Please answers FULL and complete!! 12. economy of Elmendyn contains 2,000 The $1

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Please answers FULL and complete!!

12. economy of Elmendyn contains 2,000 The $1 bills. a. If people hold all money as currency, what is the quantity of money? b. If people hold all money as demand deposits and banks maintain 100 percent reserves, what is the quantity of money? c. If people hold equal amounts of currency and demand deposits and banks maintain 100 percent reserves, what is the quantity of money? d. If people hold all money as demand deposits and banks maintain a reserve ratio of 10 percent, what is the quantity of money?

Explanation / Answer

If people hold all money as currency, the quantity of money is $2,000.

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